Vietnam: Covid keeps imported scrap market mostly quiet ; offers inch down

Vietnam’s imported scrap prices dropped slightly last weekend, with limited deals getting concluded at these levels. Finished steel demand in the domestic and overseas markets remained subdued as the country is likely to extend the lockdown in south Vietnam on soaring Covid cases.

• Fresh bulk imported scrap offers for Japanese H2 scrap are being cited at $485-490/tonne (t) CFR Vietnam basis, falling by further $5/t w-o-w. But bids remained at comparatively lower levels of $480/t CFR levels.
• No firm offers for US-origin HMS bulk scrap were reported into Vietnam in the last two weeks, owing to limited buyers interest.

Vietnam market update

Domestic ferrous scrap prices rise $26/t: Domestic ferrous scrap prices in Vietnam moved up again by VND 600/kg ($26/t) w-o-w.

• The new purchase price for H1 scrap stands at VND 11,800/kg ($513/t), while VND 11,500/kg ($500/t) is the price set for the H2 grade.
• Limited scrap availability on lower collection rates amid Covid-19 has lifted domestic prices, SteelMint observes.
• Domestic rebar prices stand at VND 15,900-16,050/kg exw. Domestic rebar sales are weak due to Covid outbreaks across main cities.

Vietnam mills active in billet exports: Vietnam’s mills continued to remain active in the billet exports market. Induction furnace (IF) route billet export offers were heard at around $680-690/t FoB Vietnam to the Philippines.

South East Asian market highlights

• Indonesia scrap buyers continue their silence: The ongoing Covid lockdown restriction has forced many mills to close and the steel market remained quiet. The scrap market has observed no activities since the last two weeks, sources informed.
• Thailand’s imported scrap prices inch down: Thailand’s imported scrap offers remained unchanged for HMS 1&2 (80:20) at $425-430/t CFR levels, lower by $5/t against prices assessed a couple of weeks back, sources confirmed to SteelMint.
• Imported scrap prices fall in Taiwan: Imported scrap prices into Taiwan continued to fall, while trade remained limited. Offers for HMS 1&2 (80:20) were reported at around $430-440/t CFR Taiwan levels, down by $10/t w-o-w.